Northern Territory Says Canberra Shouldn’t Dictate How Data Centres Are Powered - Aman Shanti News

A general view of NEXTDC Sydney Data Centre in Sydney, New South Wales in Australia on Feb. 26, 2026. AAP Image/Steven Markham

Northern Territory Chief Minister Lia Finocchiaro is pushing back against federal rules around the development of data centres, which include building more renewable energy sources.

“Ultimately, we don’t need the federal government coming in heavy-handed and trying to dictate to states and territories how they should be developing data centres or not and what energy mix they should be using,” she told ABC Radio National, ahead of a meeting of National Cabinet on Aug. 26.

“I completely appreciate, particularly with the east coast energy crisis, that there are concerns about data centres in southern states. But the Northern Territory has the answers to all of those problems,” she said.

“We can properly fuel, we can properly provide the energy in abundance to every Australian, to every data centre, to every ally that needs it.”

Federal Industry Minister Tim Ayres backed a single national approach compared to separate state-by-state regulation.

“If we lean in and get this right as one country with one approach rather than eight different approaches, then that offers the opportunity to make sure that artificial intelligence and data centres and AI training is harnessed here in the national interest in a coordinated and effective way that makes Australia stronger,” he told the ABC on Aug. 26.

Ayres described data centres as both a big challenge and opportunity for Australia.

“If we lean back and miss the opportunity—that has negative consequences for our economy, our productivity and our security,” he added.

Last month, Prime Minister Anthony Albanese vowed keep electricity prices under control promising to compel data centre builders cover the cost of new electricity generation, including renewables.

“We will create a legal obligation for the next generation of large-scale data centres to underwrite new power supply, to pay their full share of grid connection so no costs are passed on to homes or businesses, and to put at least as much energy into our grid as they take out of it,” he said during a July 15 address at the University of Sydney.

Meanwhile, Queensland LNP Premier David Crisafulli has also resisted the federal government regulation, insisting his government will develop its own plan.

“This is about data sovereignty for our country, it’s about respecting communities’ wishes and resources, and it’s about creating the jobs of tomorrow while protecting the Queensland of today,” he said on the ABC.

Crystal-Rose Jones contributed to this article.

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